A personal property that is permanently affixed to real property is called a fixture.
Understanding Fixtures
A fixture is an item that was originally personal property but has become so attached to land or a building that it is legally considered part of the real property. This transformation from personal property to real property has significant implications, especially in real estate transactions, property taxation, and legal disputes.
For an object to be classified as a fixture, it typically needs to be physically attached to the real property in a way that suggests permanence, or it must be essential to the use and enjoyment of the real property.
Common Examples of Fixtures
- Built-in appliances: Dishwashers, ovens, or microwave ovens that are integrated into cabinetry.
- Plumbing and lighting: Sinks, toilets, bathtubs, and permanently installed light fixtures.
- Heating and cooling systems: Furnaces, water heaters, and central air conditioning units.
- Landscaping elements: Mature trees, shrubs, and built-in irrigation systems.
- Structural additions: Cabinets, bookshelves, or mirrors that are bolted or cemented to walls.
Distinguishing Features of a Fixture
Determining whether an item is a fixture can sometimes be complex, but courts often consider several factors to ascertain if personal property has become a fixture:
- Method of Annexation (Attachment): How the item is attached to the real property. If removing the item would cause significant damage to the property, or if it's attached by cement, plaster, or bolts, it's more likely to be considered a fixture.
- Adaptation to the Real Property: Whether the item is custom-made or specifically adapted for use with the property. For example, custom-built shelving designed for a specific space, or a furnace designed to heat a particular building.
- Intent of the Parties: The most crucial factor is often the intent of the party who attached the item. Was the intent to make the item a permanent part of the real estate? This intent can be inferred from the nature of the item, the way it's attached, and the purpose it serves.
Fixtures vs. Personal Property
Understanding the distinction between fixtures and personal property is vital for property owners, buyers, and sellers.
| Feature | Personal Property | Fixture |
|---|---|---|
| Nature | Movable; not permanently attached to real estate. | Immovable; permanently affixed to land or structures. |
| Attachment | Can be removed without causing damage to the property. | Removal would cause damage to the property or its functionality. |
| Transfer | Transferred by separate agreement (e.g., bill of sale). | Transferred automatically with the sale of the real property unless specified otherwise. |
| Legal Status | Tangible asset separate from the real estate. | Legally considered part of the real property. |
Practical Implications
The classification of an item as a fixture has several practical implications:
- Real Estate Transactions: When a property is sold, fixtures are typically included in the sale price and transfer with the real estate unless explicitly excluded in the sales contract. Personal property, however, must be negotiated separately.
- Mortgages and Liens: Fixtures are considered part of the real estate and are therefore covered by a mortgage or any other lien placed on the property.
- Taxation: Fixtures are generally assessed as part of the real property for tax purposes, increasing the overall property value for taxation.
- Landlord-Tenant Law: In rental agreements, a specific category called "trade fixtures" exists. These are items attached by a tenant for business purposes and are generally removable by the tenant at the end of the lease, provided no damage is caused.
